Question

Question 4

The clients decide that they want to float the company on the stock exchange to raise funds. That means that they have to operate in the future as a public company. They want advice on some specific obligations they will have in running a public company. PLEASE NOTE that this is not a question about the float itself or the disclosure obligations involved in a float. It is a question about operating the public company in the future after the float.

Answer 1

Public companies are the companies whose securities trade on the stock exchange. They have some specific obligations to be performed like:

• They have to file mandatory reports like Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K. Proxy Statements
• Formation of audit committee
• Provide appropriate disclosures of the accounting policy followed
• Provide information as to key changes approved by the company
• Have regular audits of different types to satisfy regulatory requirements of SOX
• Maintain number of independent directors as specified in companies act
• Certification from CFO or CEO u/s 302 of SOX Acti